2020 Journal of Community Bank Studies

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THIRD PLACE: Mansfield University of Pennsylvania

Table 1: C&N’s YOY

later parts of the case study, the current volatile environment will award the fiscally conservative institutions. This financial analysis demonstrates that C&N cautiously remains conservative, which will grant it a strategic advantage to expand and grow its balance sheet. Year-over-year earning assets shed an interesting light when analyzing the bank’s performance. As shown, the earning assets provide a steady income, increasing by over 500% between 2018 and 2019. Managing the earning assets allow the bank to ensure the cash flow that the institution needs. Unlike net income, earning assets have increased for the past few years. The sudden growth in 2019 is likely a result of the acquisition of Monument Bank. Table 1 shows the growth the bank could accomplish quite vividly. As stated previously, the bank’s performance for the next fiscal year will depend on the impact of COVID-19. Loan Portfolio Composition Over the past five years, C&N has continually kept an impressive loan portfolio. Overall, the percentage of consumer loans makes up a very small percentage of its portfolio because the bank focuses mostly on residential and commercial loans. It is important to note that the proportion of commercial loans increased by about 5% from 2015 to 2020. Most of the

Earning Assets

2016 2017

2018 2019

Increase/Decrease

-1.01% 1.92% 3.07% 19.29%

Figure 2: Loan Portfolio Percentage

Total Residential Mortgage Total Commercial Consumer

100%

80%

60%

40%

Percentage

20%

2015

2016

2017

2018

2019

Year

Figure 3: Loan Growth by Type (in thousands)

Total Residential Mortgage Total Commercial Consumer

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000